Fed Says 1 in 5 BNPL Users Bought Groceries on Installments in 2025

1 articles · Updated · Money Talks News · Jun 23

One in five Buy Now, Pay Later users used the loans for groceries or food delivery in 2025, the Federal Reserve said, underscoring that installment credit is reaching basic household spending.
Forty-five percent of those users said BNPL was the only way they could afford the purchase, while overall BNPL use rose to 16% of U.S. adults.
The survey also found widespread misunderstanding of the product: 53% of BNPL users wrongly believed on-time payments would help their credit score, and only 14% answered basic credit-effect questions correctly.
Broader household finances were steady on the surface—73% said they were doing okay or living comfortably—but strain persisted, with 12% unable to cover a $400 emergency by any means and 23% of renters falling behind on rent.